Purchasing a home is often one of the biggest and most important investments people make in their lifetime. However, with this investment comes potential risks, such as unregistered liens or errors in the public record. This is where title insurance comes in - an essential safeguard for homeowners to protect them from potential financial losses.
What is title insurance and why do you need it?
Title insurance is a type of insurance that protects the ownership rights of a property owner in case of any claims or discrepancies with the property's title. This can include issues such as unpaid taxes, disputes over the property's boundaries, unregistered liens or errors in the public record. Without title insurance, homeowners are at risk of losing their investment and potentially facing costly legal battles.
How title insurance protects you from financial losses
One of the key benefits of title insurance is that it provides coverage for any unknown or previously undisclosed issues with the property's title. This means that even if a thorough title search is conducted, if any issues arise after the sale, the homeowner is still protected. Title Insurance will cover legal fees associated with defending title.
Title insurance also provides coverage for fraud. Title fraud occurs through identity theft when a fraudster impersonates a title owner's identity and proceeds to mortgagor/sell the innocent owner's property. While title insurance cannot prevent fraud, it can help de-frauded property owners restore title and aid in the legal fees incurred for restoring title.
Title insurance vs. home insurance: what's the difference?
While title insurance and home insurance may sound similar, they serve different purposes. Home insurance provides building and personal liability protection or coverage, while title insurance protects against financial losses related to the property's title. Homeowners should have both types of insurance to ensure comprehensive protection for their investment.
The role of title insurance in the home buying process
In the home buying process, title insurance plays a crucial role. Lenders require buyers to purchase title insurance to protect their investment in the property. Additionally, having title insurance can provide buyers with peace of mind and confidence in their purchase. It is a one-time payment made during closing and provides lifelong protection.
Title insurance is a necessary and important safeguard for homeowners as it can provide financial protection and peace of mind. It is wise for all homeowners to invest in title insurance to secure their biggest asset - their home. Title insurance premiums are a considerably low cost compared to the peace of mind and financial safeguarding they can provide.
Title insurance can be purchased at any stage of home ownership, not just at the time of acquisition. Contact Willing Law today to learn more and to order your title insurance policies today.